At the start of 2026, Aruba’s economy is showing a clear trend: money in circulation and bank lending are both increasing, but government tax revenue is declining, according to new data from the Central Bank of Aruba.
The total money circulating in the economy has grown by over seven billion florin, while the total balance of the financial system has risen by about 13 billion florin. This growth is fueled by strong foreign inflows and increased lending from banks, particularly in mortgages and consumer loans.
Aruba’s foreign reserves have also grown, reaching nearly four billion florin, reflecting continued inflows of foreign currency, such as from tourism. Banks are converting some of this money into loans, putting more funds into households and businesses.
Despite this economic growth, government revenue has fallen. In February, total revenue was 121 million florin, down from 167 million florin in January. The decrease is mainly due to lower tax income, particularly from profit taxes and other sources.
The data suggest that Aruba’s economy is being driven by two forces: foreign inflows and increased local lending. While this supports growth and expands financial activity, the impact on government finances has been slower to appear.
This may be due to timing differences in tax collection, but it also highlights that economic growth does not automatically lead to higher tax revenue.
The current trend creates a delicate balance. More money in circulation and increased credit can boost the economy, but they also raise the risk of rising prices, especially in the housing market. If tax revenue continues to lag behind economic growth, the government budget could face additional pressure. The benefits of growth are evident in the financial system but are not yet fully reflected in government cash flow.
